Power Generation Within China Decreases By 8.60%

Power Generation Within China Decreases By 8.60%

Huaneng Power International, Inc. announced its power generation in the first half year of 2016. According to the preliminary statistics of Huaneng Power International, Inc., for the second quarter of 2016, the Company’s total power generation by the power plants within China on consolidated basis amounted to 69.220 billion kWh, representing a decrease of 10.43% over the same period last year.

Total electricity sold by the Company amounted to 65.351 billion kWh, representing a decrease of 10.06% over the same period last year. In the first half of 2016, the Company’s total power generation by the power plants within China on consolidated basis amounted to 146.080 billion kWh, representing a decrease of 8.60% over the same period last year. Total electricity sold by the Company amounted to 138.075 billion kWh, representing a decrease of 8.35% over the same period last year. In the first half of 2016, the Company’s average on-grid electricity settlement price for its power plants within China amounted to RMB394.46 per MWh, representing a decrease of 12.37% over the same period last year.

The decrease in the Company’s power generation in the first half of the year was mainly attributable to the following factors: (1) the whole nation saw sluggish growth in power consumption and a decrease in utilization hours; (2) the substantial increase of cross-regional power transmission squeezed the generation potential of the coal-fired power generators in the coastal areas in the east and south of the country (e.g. Henan, Chongqing, Shanghai, Jiangsu, Zhejiang and Guangdong), which accounted for a relatively high proportion in the Company’s total power generation capacities; (3) due to heavy rainfall in the first half of the year, the power generation of nationwide large-scale hydro power plants increased by 16.7% compared to the same period of last year, which reduced the output of coal-fired power plants located in the middle and east of China; (4) the release of the 2015 newly installed capacity in Liaoning, Guangdong and Fujian, combined with the commencement of operations of new nuclear power generators in Guangdong and Guangxi in 2016, had a negative impact on the output of coal-fired power units in these regions.